Question

The added value that a certain product has by virtue of its brand name (in other words, the value of the product with a brand mark compared with a generic product of the same quality) is called __________.

Answer 1

Answer:

brand equity

Explanation:

Brand equity refers to the commercial value added to one product or service by the customer's perception of its brand. Some brands have a higher brand equity and customers perceive them as high quality or luxury products, e.g. Mercedes Benz or Apple. While other brands are perceived as common or ordinary products with medium or low quality.

Two products may be identical or very similar, but the fact that a product's brand may be perceived as better than the other, allows a company to charge a higher price for it.